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WATERDEMANDMANAGEMENTINMALAYSIA

THEBIGPICTURE

byDATO’TEOYENHUAChiefExecu?veOfficer

Na?onalWaterServicesCommission(SPAN)

19October2009

ColloquiumOnWaterDemandManagementPutraWorldTradeCentre,KualaLumpur

1. WhatIsDemandManagement?

2. PurposeOfWaterDemandStrategy(WDS)

3. ConsequencesOfNotHavingWDS

4. Demand‐SupplyGap

5. ManagingNonRevenueWaterLosses

7. OtherWaterDemandManagementStrategies

8. Conclusion

2

CONTENT

Purposefulandbeneficialmanipula4onofthe4mingandlevelofusage

Improvements to economic efficiencies areachieved when total benefits outweigh thetotalcostofimplementa4on

Evolved in the context of least‐cost orintegratedresourceplanning

3

1. WHATISDEMANDMANAGEMENT?

To ensure long term balance betweenavailablewaterresourcesandwaterdemand

to postpone the need for expensive capitalinfrastructure projects for as long as it iseconomicallyviable

to reduce water wastage and increase useefficiency

Improve financial health of operators andkeepingtariffsataffordablelevels

2. PURPOSEOFWATERDEMANDSTRATEGY

Risk of total demand exceeding availablesupply that may require long term waterrestric4on

Premature development of dams andtreatmentplantsatsignificantcosts

Lossofincome

Directcostofdistribu4onlosseswillcon4nuetoincrease

5

3. CONSEQUENCESOFNOTHAVINGWDS

SELANGOR–DEMAND&SUPPLYPROJECTION

3,600

3,800

4,000

4,200

4,400

4,600

4,800

5,000

5,200

5,400

5,600

2008 2009 2010 2011 2012 2013 2014 2016 2018

mld

AvailableCapacity

ForecastDemand

PlanningDemand

4. DEMAND–SUPPLYGAP(1)

Datasource:SYABASprojec4on

Demandandsupplygapmainlydueto:

Naturalincreaseindemandduetopopula4ongrowth,urbaniza4onandindustrializa4on

LossofWater

• Physicalloss• Commercialloss

Infrastructure built‐up that lags behinddemand

4. DEMAND–SUPPLYGAP(2)

PERCAPITAUSAGEBETWEEN1998‐2008

Water Supply Entities

Year ( I/cap/d)

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Johor 176 185 310 293 187 191 199 201 204 206 207

Kedah 192 184 281 305 238 323 232 232 234 244 236

Kelantan 118 113 175 151 106 109 111 111 112 144 142

Labuan 225 176 367 289 192 202 194 230 214 213 225

Melaka NA 172 372 389 194 225 205 210 213 265 268

N.Sembilan 175 107 329 327 198 202 197 362 379 237 239

Pulau Pinang 226 265 466 469 287 266 270 273 274 281 285

Pahang 198 201 273 268 155 162 162 169 173 224 228

Perak 188 191 251 266 210 213 216 216 216 217 218

Perlis 211 166 243 261 223 215 228 224 226 215 229

Sabah 134 207 110 137 78 77 103 124 135 126 106

Sarawak NA 284 218 220 160 145 155 161 163 130 129

Selangor 228 235 319 323 217 194 208 244 212 232 234

Terengganu 144 174 288 317 177 180 184 183 187 195 189

NATIONAL AVERAGE

185 190 282 287 187 184 171 172 172 206 205

Data Source JBA, KeTTHA MWIG 2003 MWIG 2005 MWIG 2006 MWIG 2007 MWIG 2009

MWIG–MALAYSIAWATERINDUSTRIALGUIDE

0.22

0.40 0.420.55 0.55

0.370.30

0.40 0.40

0.57

0.90

0.42

0.70 0.65

0.85 0.85 0.790.70 0.70 0.75

1.03

0.52

0.900.90

1.331.40

0.99 1.031.10 1.05

2.00

0.90

1.101.00

1.00

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

1.60

1.80

2.00

2.20

P.Pinang Kedah T'ganu Melaka N.S Pahang Perak Perlis K'tan S'ngor Labuan

TariffRM

Band1 Band2 Band3 Band4 Band5

9

TARIFFSTRUCTUREDOMESTICTARIFFRATE2008(RM/m³)

P.Pinang Kedah T'ganu Melaka N.S Pahang Perak Perlis K'tan S'ngor Labuan

Band1(m3) 0‐20 0‐20 0‐20 0‐15 0‐20 0‐18 0‐10 0‐15 0‐20 0‐20 Everym3

Band2(m3) 20‐40 15‐40 21‐35 18‐45 11‐20 15‐40 20‐40 21‐35

Band3(m3) 40‐60 40‐60 40‐60 >40 >35 >45 >20 >40 >40 >35

Band4(m3) 60‐200 >60 >60

Band5(m3) >200

Band1Avg–RM0.46

Band3Avg–RM1.12 Band2Avg–RM0.74

Band4

Band5

PulauPinang

MelakaN.

SembilanKedah Selangor Perlis Pahang Labuan Perak Johor T'ganu Kelantan

PercapitaUsage(l/c/d) 285 268 239 236 234 229 228 225 218 207 189 142

AvgTariffforFirst35m3(RM/m3) 0.31 0.72 0.68 0.53 0.77 0.57 0.57 0.90 0.73 0.98 0.52 0.55

0.00

0.20

0.40

0.60

0.80

1.00

1.20

0

50

100

150

200

250

300

AverageTariffforFirst35m3(RM/m3)

PerCapitaUsage(l/c/d)

AVERAGETARIFF(RM/m3)AGAINSTPERCAPITAUSAGE(l/c/d)FOR2008

NRW%PENINSULARMALAYSIAANDFTOFLABUANBETWEEN2003AND2008

2003 2004 2005 2006 2007 2008

Produc?onMLY 3,510 3,650 3,677 3,908 4,057 4,197

Consump?onMLY 2,225 2,275 2,400 2,529 2,584 2,672

2,000

2,500

3,000

3,500

4,000

4,500

MLY

36.6%37.7%

34.7%

35.3%36.3%

36.3%

5. MANAGINGNONREVENUEWATERLOSSES(1)

‐

10.00

20.00

30.00

40.00

50.00

60.00

45.0

31.2

52.9 53.2

33.2 31.3 30.1

16.9

38.033.9

31.3

49.4

(%)

NRWforPeninsularMalaysia2008

CurrentaverageNRWis36%

Highest

Lowest


NRWFORPENINSULARMALAYSIA2008

NRW%FORSELANGORBETWEEN2003AND2008

2003 2004 2005 2006 2007 2008

Produc4on 1,291 1,364 1,361 1,378 1,392 1,423

MeteredConsump4on 724 791 838 873 908 940

NRW% 43.9 42.7 38.4 36.6 34.7 33.9

43.9 42.7

38.4 36.634.7 33.9

‐

200

400

600

800

1,000

1,200

1,400

1,600

MLY


Under the 9th Malaysian Plan it is targeted toreduceNRWto25%by2015

TheNRWisinfluencedby

• Deteriora4onofpipenetwork• Systempressure

• Meteringinaccuracies&billinginefficiencies

• Illegalconnec4ons

AswaterresourcesgetmorelimitedweneedtoemphasizeonreducingNRWvolumes


Basedontotalvolumeofwaterproducedinyear2008at4,196,000MLY and a na4onal average NRW of 36.3%,thetotalvolumeofwaterthatdoesnotbringinrevenueis1,524,000MLY

Lossofrevenueasaresultofleakages:• For physical losses (1,220,000MLY) ‐ based on unit

produc4oncostsoftherespec4vestatesorthebulksupplyratewhicheverisapplicable,theapproximateloss in addi4onal opera4ng expenditure is RM434million

• For commercial losses (304,000 MLY) – based onaverage tariff* of the respec4ve states, theapproximatelossinrevenueisRM325million

15


*basedonfirst35m3fordomes4cfirst500m3forcommercial

WHATISTHESAVINGINACHIEVINGTHENATIONALAVERAGENRWOF25%by2015?

To reduce the na4onal average NRW of 36% to 25%wouldputbackatotalof475,000*MLYintothesystemfor consump4on and giving an extra revenue ofapproximatelyRM488million

• For physical losses (380,000 MLY) ‐ the approximaterevenueputbackintothesystemisRM390million

• Forcommerciallosses(95,000MLY)‐theapproximateaddi4onalgaininrevenueisRM98million

From the reduc4on ofNRW, it is es4mated that aboutRM1.67billionwouldbe saved fromCAPEXworks forwatertreatmentplants

16*Basedon2008produc4on

Over the years NRW levels in various states are becomingamaierofconcern,andaneedtoiden4fylevelofleakage/NRWthrough theuseofwateraudit/waterbalance.Somestrategiestoaddresstheproblemare:

Meterreplacementprogram–needtobedevelopedinearlystages,par4cularlyforlargeindustrialuserswhereoldmechanicalmetersunder‐recordstovaryingdegreestypically3to15%

Based on age profile of the 6.0 million meters in thecountry,1.5millionmetersareabove7yearsandneedtobechanged

It is es4mated that about RM75 million need to bespentonmeterchangeprogramintheimmediateterm

17


STRATEGIESTOADDRESSNRW

Understand the importance ofwater losses and itsmul4‐dimensionalissues

EstablishcommonNRWdefini4onandcomputa4on

SekngKPIforNRWreduc4on Link asset replacement program to the leakagecontrolstrategy

GISfordistribu4onmappingandconsumersprofile



EstablishDMZ

• Measuringflowandverifyconsump4on

• Leakdetec4onandrepair• pressuremanagement

UseofSCADAandtelemetrysystematreservoirsinmonitoringreservoirslevels

Systemsmaintenance

• meteraccuracytes4ng

• valveservicingprogram



Differenttariffrateandstructureindifferentstates

Somestateshavetariffstructuresthatbeginwith 0‐15m³,0‐20m³etc

Subsidyforhardcorepooratlifelineband

Puni4ve tariff structure for high users where tariff forlifelineband istobekept lowandthereanerpuni4veratesbeimposedtoencouragewaterconserva4on

Tariff increase as an economic tool to achieveul4mate fullcostrecovery

6. OTHERWATERDEMANDMANAGEMENTSTRATEGIES(1)

WATERPRICINGANDTARIF

NEWWATERSUPPLYRULES UnderWSIA2006‐Sec4on180,SPANareempoweredtomakenew

watersupplyrules

SPANisdraningnewWaterSupplyRulestoreplaceexis4ngStateWaterSupplyRules

The Water Supply Rule will prescribe the minimum engineeringstandards, specifica4ons and level of service to be applied to allstakeholders, developers, contractors, consultants, plumbers andothers in the planning, design, construc4on, opera4on andmaintenanceofwaterdistribu4onandinternalplumbingsystems.

Scheduledtobegazeiedearly2010 NewWaterSupplyRulesalsoaddresseswaterconserva4onmeasures

whichincludes:• Mandatoryinstalla4onofdual‐flushWCcistern

• Plumbingrequirementsforrainwaterharves4ng


REVISIONOFWATERSUPPLYRULES

Water Supply Rules can be reviewed from 4me to4me to include other water conserva4on/demandmanagementprac4ces:• Installa4onsofwaterefficientfikngs (e.g. taps, showerheads,

urinals)

• Installa4ons of water saving devices (e.g. water saving bags,constantflowregulators,thimbles)

• Useofwaterefficientwashingmachines

• Introduc4onofwaterefficiencylabellingscheme

• registra4onofwaterefficientproducts Asprac4sedbydevelopedcountriese.g.Singapore


WaterEfficiencyPlan

• Promote non‐domes4c high volume user to develop andimplementWaterEfficiencyPlan– Industries,Governmentbuildings,Hospitals,Mosques

– Universi4es, School, Hotels, Commercial buildings (e.g.Shoppingcomplexes)


WaterReuseandRecycle• Wastewatercanbereusedfornon‐domes4cpurposessuch

aslandscapeirriga4onandIndustrial

• IWKiscarryingoutR&Donreuseofwastewaterfrombigseweragetreatmentplants

Awarenessprogram

• Publiccampaigntoeducateconsumers inreducingwaterwastage

• Water ForumestablishedunderWSIA in July2008plays prominent role in promo4ng publicawarenessinwaterconserva4on

• Mass media par4cipa4on as a communica4onplasorm in dissemina4ng informa4on to thepublic and encourage changes in consumerbehavioronwaterusage


Goodwaterdemandmanagementcan

ensure appropriate and 4mely financia ldeploymentforwaterinfra‐structuredevelopment

achieve efficient use of water resources bymanaging balance between supply and waterdemand

increase in resource use efficiency that couldconserve and increase the sustainability of longtermresourceavailability

7. CONCLUSION

26

WWW.SPAN.GOV.MY

Water Restructuring Progress State Licence

issuedCorpora?za?on TransferofAssetsandLiabili?es

Completed On‐goingnego?a?ons

Melaka Tobeissued √(beforeWSIA) √

N.Sembilan √ √ √

Johor √ Priva4zed √

Selangor Priva4zed √

Pahang ApprovedbyFederalGovernmentbutnotimplemented

√

Perlis IntheprocessofgekngFederalGovernment’sapproval

√

Kedah IntheprocessofgekngFederalGovernment’sapproval

√

Perak Intheprocess √

Terengganu √(beforeWSIA)

Kelantan Tobeissued Priva4zed √

PulauPinang √(beforeWSIA) √

Labuan Intheprocess

28

PUBSINGAPORE’S“WATEREFFICIENCYLABELLINGSCHEME”

PRODUCTS/FITTINGSFLOWRATE/

FLUSHCAPACITYREQUIREMENTSUnderMandatory

WELSZeroTick

Good#

VeryGood

Excellent

ShowerTaps&Mixers(PressureRangefrom0.5to5.5bar)

>9litres/min >7to9litres/min >5to7litres/min 5litres/minorless

BasinTaps&Mixers(PressureRangefrom0.5to5.5bars)


Sink/BibTaps&Mixers(PressureRangefrom0.5to5.5bars)


FlushingCisterns(PerFlush) NA

DualFlush>4to4.5litres(fullflush)

>2.5to3litres(reducedflush)

DualFlush>3.5to4.0litres

(fullflush)

>2.5to3litres(reducedflush)

DualFlush3.5litresorless(++)

(fullflush)

2.5litresorless(reducedflush)

Urinals&UrinalFlushValve(PerFlush) NA >1to1.5litres >0.5to1litres

0.5litresorless(++)orwaterlessurinals

UnderVoluntaryWELSZeroTick

Good

VeryGood

Excellent

Showerheads(PressureRangefrom0.5to5.5bars)

NA >7to9litres/min >5to7litres/min 5litres/minorless

ClothesWashingMachines(PerWashload) NA >12to15litres/kg >9to12litres/kg 9litres/kgorless

DualFlushCistern

• Iden4fiedasaneffec4vewaterconserva4onmeasuresince1990s

• CabinetthroughMinistryofHousingandLocalGovernment(KPKT)hadissued circulars in year 2000 to all State Governments and LocalAuthori4esoninstalla4onofsingle6litresflushordual6/3litresflushWCcisternaswaterconserva4onmeasure• Immediateinstalla4onforallgovernmentbuildings

• Installa4onforprivatebuildingsasof1June2002

• Asitisanop4on,useofdualflushcisternisnotcommon.• SPAN has organized consulta4ons with stakeholders (developers,

government agencies,water operators andmanufacturers) on use ofdualflushWCcistern

• UnderthenewWaterSupplyRules,installa4onofdualflushWCcisternwill be mandatory for new housing schemes and other types ofbuildingseffec4vefrom1January2012


DualFlushCistern(Contd..)

• Es4mateofaveragedailydomes4cuse– Toilet 30%– Bath/Shower 28%– ClothesWashing 20%– Cleaning 15%– Cooking/Drinking 4%– Leaks 2%

• Es4matedsavingsifdual‐flushcistern(6/3litres)istobeused– SingleFlush6litres 5x6lit =30lit– DualFlush6/3litres 1x6lit(FullFlush) =6lit 4x3lit(ReducedFlush) =12lit Total=18lit(Savingsof12litresor12%ofaveragedailyconsump4on)

• Es4matedsavingsinconsump4on(2008figures)– Domes4cConsump4on =12%of5,481MLD =658MLD orOverallConsump4on =658/8,362MLD =7.8%


DualFlushCistern(Contd..)

• Another direct benefit of installing dual–flush cistern islower volume of wastewater which results in lowerpumpingcostintheopera4onofseweragesystem.


32

TARIFFSTRUCTURE

DOMESTICTARIFFRATE2008(RM/m³)

33

TARIFFSTRUCTURE

COMMERCIALTARIFFRATE2008(RM/m³)

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